May 2026 - Page 6 of 21

ITC – ITC Limited – Q4 FY26 Financial Results – 21-May-26

ITC’s FY26 delivered steady 5–10% growth, anchored by ~55% EBIT margins in cigarettes and near‑full OCF conversion. FMCG‑Others profitability is improving but still sub‑10%; Paperboards and Agri remain low‑margin. Re‑rating hinges on FMCG margin inflection, while cigarette margin compression makes ITC a yield‑focused compounder.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew 10.2% YoY (₹81,613 Cr → ₹89,913 Cr), driven by cigarettes segment surging 13.1% YoY (₹35,894 Cr → ₹40,601 Cr) and FMCG-Others up 10.5%.
Q4FY26 gross revenue jumped 17.1% YoY (₹20,176 Cr → ₹23,626 Cr), the strongest quarterly print of the year — partly aided by excise duty reclassification inflating reported numbers.
Agri business grew modestly at 3.1% YoY (₹20,164 Cr → ₹20,787 Cr); Paperboards at 4.1% — both segments remain subdued relative to FMCG.

Bottomline

Profit from continuing operations grew 4.9% YoY (₹20,036 Cr → ₹21,018 Cr); EPS from continuing ops rose from ₹15.78 to ₹16.52 — steady but unspectacular.
FY26 total PAT appears down sharply vs. FY25 (₹21,018 Cr vs. ₹35,052 Cr) only because FY25 included ₹15,016 Cr from discontinued hotel operations post-demerger — not a like-for-like comparison.
Exceptional items of ₹291.70 Cr in FY26 (nil in FY25) modestly dented reported PBT; pre-exceptional PBT grew 5.2% YoY (₹26,927 Cr → ₹28,325 Cr).

Margins

Segment EBIT margin for cigarettes: ₹22,246 Cr on ₹40,601 Cr revenue = 54.8% — essentially flat vs. FY25’s 58.8% (₹21,091 Cr / ₹35,894 Cr); slight compression despite volume-led growth.
FMCG-Others segment results improved: ₹1,812 Cr on ₹24,322 Cr = 7.4% margin vs. 7.2% in FY25 — incremental but directionally positive.
Other income declined 4.1% YoY (₹2,530 Cr → ₹2,426 Cr), partly offsetting operating gains; reflects lower treasury yields or reduced investible surplus post-demerger.

Growth Trajectory

Pre-exceptional PBT 5-yr CAGR implied by this single-year step (FY25→FY26): +5.2% — modest for a cash-generative quasi-monopoly.
Associates & JV profit contribution surged to ₹377 Cr vs. ₹110 Cr in FY25 — partially reflecting post-demerger equity-accounting of hotel business.
FMCG-Others continues its multi-year profitability improvement arc; at 7.4% EBIT margin, still well below cigarettes’ ~55% — long runway but slow burn.

MOTHERSON – Samvardhana Motherson International – Q4 FY26 Financial Results – 20-May-26

Motherson’s FY26 shows 10.6% EBITDA growth, OCF nearly doubling, and Q4 margin at 11.1% — clearest inflection yet. PAT flat from exceptions, but underlying trajectory healthy. Re‑rating hinges on sustaining >10% EBITDA margins; near‑term headwinds are rising capex, WC build, and EPS dilution.

1–2 minutes

🔍 Observations

Topline

Revenue from operations hit ₹1,26,104 Cr in FY26, up 10.9% YoY (from ₹1,13,663 Cr), driven by broad-based segment growth.
Q4FY26 revenue surged to ₹34,309 Cr, up 17.0% YoY from ₹29,317 Cr — strongest quarterly print of FY26.
Emerging Businesses was the standout, growing 49.5% YoY (₹11,418 Cr → ₹17,072 Cr at segment level); Integrated Assemblies grew 9.2%.

Bottomline

FY26 PAT at ₹4,086 Cr, marginally down from ₹4,146 Cr in FY25 — despite 10.9% revenue growth, exceptional charges of ₹414 Cr dragged net profit.
Q4FY26 PAT jumped 40% YoY (₹1,115 Cr → ₹1,562 Cr), signaling strong exit-quarter momentum.
Pre-exceptional PBT grew 6.5% YoY (₹5,261 Cr → ₹5,624 Cr); full-year PAT suppression is entirely attributable to the ₹414 Cr exceptional line.

Margins

FY26 EBITDA: ₹12,033 Cr vs ₹10,877 Cr in FY25 — EBITDA margin expanded to 9.5% from 9.6% on reported revenue (flat), but EBITDA grew 10.6% in absolute terms.
Q4FY26 EBITDA margin: ₹3,805 Cr on ₹34,309 Cr revenue = 11.1%, vs 9.1% in Q4FY25 — 200bps sequential and YoY expansion.
Operating margin (per KPIs): Q4FY26 at 6.9% vs 4.7% in Q4FY25; FY26 full year flat at 5.2% — Q4 outperformance is a meaningful inflection signal.

Growth Trajectory

FY26 revenue CAGR base is now ₹1.26L Cr; Motherson has a stated $36B revenue target — still significant headroom to grow.
Employee costs grew 10.9% YoY (₹28,387 Cr → ₹31,478 Cr), in line with revenue — no labour cost deleverage yet.
Finance costs fell 13.7% YoY (₹1,882 Cr → ₹1,624 Cr) despite higher borrowings — reflects QIP proceeds deployed and debt mix optimization.

TATASTEEL – Tata Steel Ltd – Q4 FY26 Earnings Call – 16-May-26

Tata Steel’s topline growth hinges on India demand and value-added mix; bottomline resilience depends on cost transformation and Europe policy execution; margins expand in India/UK but face pressure in Netherlands due to operational disruptions.

1–2 minutes

Also see: TATASTEEL – Tata Steel Ltd – Q4 FY26 Financial Results – 15-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

India demand grows 7–9% (infrastructure-led), with ₹6,000/t price hikes and margin expansion in India/UK. Netherlands EBITDA stabilizes post-DSP restart; CGP closure managed safely. Capex at ₹20K crore drives 2M+ ton volume growth; NINL FID in 2026. Net debt/EBITDA improves to ~2.0x.

NCC – NCC Ltd – Q4 FY26 Earnings Call – 16-May-26

NCC’s topline recovery hinges on macro stability and execution pace; margins face structural pressure from input costs; liquidity remains contingent on working capital cycles and subsidiary repayments.

1–2 minutes

Also see: NCC – NCC Ltd – Q4 FY26 Financial Results – 15-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Macro stability returns post-Q1 FY27; revenue grows 5–10% (low base FY26) with EBITDA margins stable at 8.5–9% (escalation clauses partially offset inflation). Working capital days improve to 90–95 (U.P. JJM payments normalize). Net debt flat at INR 1,600–1,700 cr; EPS INR 9–10. Capex INR 500 cr executed as planned.

KIRLOSENG – Kirloskar Oil Engines – Q4 FY26 Earnings Call – 14-May-26

Kirloskar Oil Engines’ findings imply topline growth is structurally supported by capex and international expansion, but margins and bottomline are sensitive to raw material costs, execution risks, and cyclical demand.

1–2 minutes

Also see: KIRLOSENG – Kirloskar Oil Engines – Q4 FY26 Financial Results – 14-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Steady execution of capex and international expansion, with moderate macroeconomic stability. Revenue grows at 15–20% CAGR, supported by Powergen and industrial segments. EBITDA margins stabilize at 13–13.5%, with asset turns at 4%. USD2 billion target achieved by FY30 with minor delays.

MUTHOOTFIN – Muthoot Finance – Q4 FY26 Earnings Call – 14-May-26

Muthoot Finance’s topline growth remains robust, but margins face pressure from yield normalization and rising costs; bottomline resilience hinges on NPA recoverability and subsidiary scaling.

1–2 minutes

Also see: MUTHOOTFIN – Muthoot Finance – Q4 FY26 Financial Results – 14-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

AUM grows 12–15% with yields stabilizing at 19–20%. Competitive pressure caps margin expansion, but NPA recoverability (58% LTV) limits downside. Branch expansion supports long-term volume growth.

TMPV – Tata Motors Passenger Vehicles – Q4 FY26 Earnings Call – 14-May-26

TMPV/ Tata Motors Passenger Vehicles’ topline growth hinges on supply execution and macro stability, while margins depend on commodity pass-through and JLR cost savings; bottomline resilience requires cash flow discipline amid structural headwinds.

1–2 minutes

Also see: TMPV – Tata Motors Passenger Vehicles – Q4 FY26 Financial Results – 14-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Commodity costs stabilize at 5–6% revenue impact, partially offset by 2–3% price increases and cost reductions. JLR achieves GBP1.7B savings, reducing breakeven to 300K units by FY28. India PV grows 10%, with EV/CNG penetration driving mix improvements. FCF remains positive as capex normalizes. Margins expand modestly on fixed cost leverage.

VOLTAS – Voltas Ltd – Q4 FY26 Earnings Call – 14-May-26

Voltas’ topline growth hinges on summer demand and price pass-through; bottomline recovery depends on margin expansion via cost controls and MEP execution; structural risks (FX, commodities) cap upside without mitigation success.

1–2 minutes

Also see: VOLTAS – Voltas Ltd – Q4 FY26 Financial Results – 14-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Moderate summer (10-15% RAC volume growth) and partial price pass-through (5-8% hikes) lead to UCP margins improving to 4-5%. MEP revenue stable but FX and commodity pressures persist, limiting PBT margin expansion. Voltbek holds 8-9% share; Textile Machinery recovers slowly. EPS grows 5-10%.

BHARTIARTL – Bharti Airtel – Q4 FY26 Earnings Call – 14-May-26

Bharti Airtel’s findings imply topline growth hinges on ARPU reforms and Africa scaling, while margins depend on cost discipline and new growth bet execution; FCF resilience underpins dividend sustainability.

1–2 minutes

Also see: BHARTIARTL – Bharti Airtel – Q4 FY26 Financial Results – 13-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Gradual ARPU improvement, steady Africa growth.

ARPU grows 5–7% via organic levers (postpaid, upgrades), offset by roaming/handset headwinds.
Africa EBITDAaL grows 12–15%, India mobile adds 20–25M subscribers/year.
New growth bets (DC/Cloud/FS) contribute 5–10% to EBITDAaL by FY2028.
Implication: Revenue CAGR 8–10%, EBITDA margins stable at 51–52%, FCF ~Rs. 45,000 Cr.

APOLLOHOSP – Apollo Hospitals Enterprise – Q4 FY26 Financial Results – 20-May-26

Apollo Hospitals’ FY26 delivered 33% PAT on 16% revenue growth, with Digital Health turning profitable — a margin expansion catalyst compressing EV/EBITDA. Net debt/EBITDA ~0.9x, but current borrowings spike and opaque acquisition need scrutiny. FCF ~₹8,937 Mn confirms self‑funding; FY27 watch is debt structure and capex intensity.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew 15.8% YoY (₹217,940 Mn → ₹252,285 Mn), with all three core segments contributing — Healthcare Services (+13.6%), Retail Health & Diagnostics (+20.1%), and Digital Health & Pharmacy (+18.9%).
Q4FY26 revenue at ₹66,055 Mn grew 18.1% YoY over Q4FY25 (₹55,922 Mn), maintaining strong sequential momentum.
Digital Health & Pharmacy is now 43% of consolidated revenues, cementing its role as the volume engine.

Bottomline

PAT grew 33.1% YoY (₹15,051 Mn → ₹20,027 Mn), significantly outpacing revenue growth — a clear sign of operating leverage kicking in.
Basic EPS jumped from ₹100.56 to ₹135.04 (+34.3% YoY), reflecting earnings accretion without dilution.
Q4FY26 PAT of ₹5,513 Mn grew 33% YoY over Q4FY25 (₹4,145 Mn), sustaining the annual acceleration trend.

Margins

EBITDA proxy (PBT + Finance costs + D&A): FY26 = ₹26,609 + ₹4,496 + ₹8,761 = ₹39,866 Mn on revenues of ₹252,285 Mn → EBITDA margin ~15.8% vs FY25 (₹20,391 + ₹4,585 + ₹7,575 = ₹32,551 Mn on ₹217,940 Mn) → ~14.9%. Margin expanded ~90 bps YoY.
Net profit margin: FY26 = 7.9% vs FY25 = 6.9% — 100 bps expansion, driven by Digital Health segment swinging to meaningful profitability (₹1,127 Mn → ₹3,987 Mn segment result).
Retail Health & Diagnostics segment result nearly tripled (₹300 Mn → ₹723 Mn), adding further margin uplift.

Growth Trajectory

Three-year compounding is clearly accelerating: PAT grew 33% this year versus revenue growth of 16% — bottomline is finally outrunning topline.
Digital Health segment results surged 254% YoY (₹1,127 Mn → ₹3,987 Mn), signalling a structural shift from investment phase to profit contribution.
Segment result margin for Healthcare Services: FY26 = 24,303/127,501 = 19.1% vs FY25 = 21,295/112,201 = 19.0% — core hospital margins holding steady while adjacencies scale.